The Australian advertising market will fall just short of $16 Billion in total spend in 2017, according to Magna Australia, IPG Mediabrands’ media investment and intelligence division.
The new forecast comes as the Australian market achieved stronger than expected growth of 7.4 per cent in 2016 and Magna is predicting the market will expand by another 6.3 per cent in 2017.
Growth in the Australian advertising market continues to be driven mostly by digital advertising which Magna calculates will be up 16.3 per cent YOY in 2017, leaping to 52 per cent of total advertising spend in 2017 and is expected to secure 65 per cent of total advertising spend by 2021.
In 2017, mobile will command close to 50 per cent of digital ad spend and will be an estimated 66 per cent of all digital advertising spend by 2021, enjoying an impressive five-year CAGR of 22.2 per cent
“This persistent strength in digital growth is especially surprising because Australia is considered one of the most developed digital economies globally,” said Magna Australia managing director Victor Corones (pictured above).
“It means we are not seeing any slow-down in digital advertising investment.”
Growth in social media investment is expected to slow somewhat in 2017, according to the Magna forecast, however social will still experience an impressive growth rate of 28.6 per cent YOY.
Total screen advertising spend is expected to accelerate to +5.6 per cent growth in 2017 off the back of a modest +3.3 per cent in 2016. Television is expected to command 78 per cent of total screen advertising dollars but faces a slight contraction in ad spend of -2.1 per cent YOY due to the absence of special events like Federal Election and the Olympics, with those advertising dollars not being there in 2017. The remaining 22 per cent of screen ad spend will be digital video which will enjoy 45 per cent growth across 2017.
Radio is forecast to increase +2.0 per cent YOY while advertising dollars for newspapers and magazines are expected to contract -12.3 per cent and -10.7 per cent respectively YOY.
Across the Out of Home sector ad spend is expected to be up +8.2 per cent, of which most growth will come from digital assets which will see an ad spend increase of +20.7 per cent YOY.
Independent brand and digital agency, Archibald Williams (AW) has been appointed to lead the NBA account across the APAC region. The NBA is one of the most prestigious sporting leagues in the world and basketball is one of the fastest-growing sports in Australia. Effective immediately, AW said it was “excited” to work across all digital, […]
B&T's shining a light on industry folk prior to adland. Preference given to anyone purporting actual UFO abduction.
Leading digital outdoor company QMS has announced it is the first-ever inaugural partner for Most Contagious APAC, the landmark London event by creative and strategic intelligence company Contagious, which will be showcased in Australia on Tuesday, 12 December in Sydney and Wednesday, 13 December in Melbourne. Most Contagious is an event that delivers key advertising […]
Omnicom’s data and analytics division Annalect has partnered with Meta, giving it access to Advanced Analytics (AA) – one of Meta’s privacy-focused measurement solutions – to provide Omnicom’s clients with future-proof, next-level measurement. Omnicom is the first holding company to have access to AA. AA allows advertisers to combine their first-party data with Meta’s ads […]
WPP’s AKQA has launched Fixmas.gift, an environmentally conscious AI-powered DIY assistant, affectionately known as Fixie, for a one-stop solution for all things repair. Fixmas.gift hosts an array of guides and inspiration to empower people to prolong the lives of their belongings or purchase pre-owned items that need a little love and care. Fixie can: Help […]